Growing up in Hong Kong, Gordon would often skip school to train at a martial arts house run by Lau Charn. The bonds formed with Lau family would lead to Gordon being adopted into the family, making him the brother of the famous Shaw Brothers director and actor Lau Kar-leung. Through his brother, Gordon started his acting career working with the Shaw Brothers studio, where he married his passion for martial arts with the big-screen. He starred in the 1978 film, The 36th Chamber of Shaolin, which revolutionized the genre, influencing kung-fu films for years to come. The marriage would span dozens of films, but with age his roles diminished along with his abilities. TVB would later contract Gordon for a variety of roles in television dramas.

Long time admirer of Liu's talent, Quentin Tarantino, would cast him in the Kill Bill series. Before accepting the role Liu, who had never heard of Tarantino, thought "I'm an Asian star from the '70s, why would anyone want me to be in a 21st century movie?" The series would bring Liu's international celebrity status beyond that of the cult following he gained from his kung-fu films of the 70s.